Hawaii's Science, Technology and New Media Community

Do you care about Act 221/215?

Some folks are concerned that the Leg will let 221/215 expire in 2010 and either not renew it, or renew some Frankenstein that will render the benefit ineffective.

I'd like to know how the Entreprenuers here feel about Act 221/215.

1) Do you make use of it?

2) Would you be willing to fight for it?

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Permalink Reply by John on July 29, 2008 at 10:36pm: Hi Peter,

Can you briefly explain the economic benefits for the state? As in, the state has spent X in time period Y and this has returned A, B and C.

I know there is a 2007 Taxation study but I cannot find it online yet. Also, a brief description would improve the discussion.

Peter Kay said:
IMO 221/215 tax refunds are probably the best, most efficient money the state has ever spent. I'd love to see the numbers behind ANY state-driven economic diversity program that has done more or cost less.; ▶ Reply to This

Permalink Reply by Peter Kay on July 29, 2008 at 11:08pm: That's a fantastic question John and while I don't have the info onhand, I know that this research has been done and the numbers are clearly positive. There are a group of folks are working hard to produce/publish these reports and I will definitely do so here when I get a hold of those numbers.; ▶ Reply to This

Permalink Reply by Truman Leung on July 30, 2008 at 5:29pm: Being bootstrapped, the refundable investment credits don't provide a benefit to my company. However, I do take advantage of the state income tax exemption for all income derived from intellectual property created by the company, which in my case is all income generated by the company. This benefit is provided for under Section 235-7.3, HRS:

http://www.capitol.hawaii.gov/hrscurrent/Vol04_Ch0201-0257/HRS0235/...

Will this expire in 2010?; ▶ Reply to This

Permalink Reply by Peter Kay on July 31, 2008 at 12:40am: Good question. Dunno.; ▶ Reply to This

Permalink Reply by Daniel Leuck on November 1, 2008 at 1:22pm: One important change that needs to happen is a redefinition of "software company" to include SaaS providers. The fact I have to ship a box to be considered a software company is absolutely idiotic, not to mention environmentally unsound. Doesn't our state want tax revenue from the next Google?; ▶ Reply to This

Permalink Reply by John on November 1, 2008 at 1:51pm: Dan, so how is ooi going to deal with this limitation? Will you send commemorative thumb drives to each user who signs up? :); ▶ Reply to This

Permalink Reply by Daniel Leuck on November 1, 2008 at 3:43pm: We have been advised that we can either apply under entertainment or ship some aspect of the software to customers.

John said:
Dan, so how is ooi going to deal with this limitation? Will you send commemorative thumb drives to each user who signs up? :); ▶ Reply to This

Do you care about Act 221/215?

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